Citi says it’s “pleased to put the matter behind it”
Citigroup Global Markets has been fined almost £13 million for failing to meet the main City watchdog’s requirements for monitoring the bank’s London traders.
The Financial Conduct Authority found that measures in place at the bank to identify potential market abuse were not update in line with changes the regulator made to its rules in 2016 covering the monitoring of orders and trades. The FCA said there were “significant gaps” in “arrangements, systems, and procedures for additional trade surveillance”.
Regulators also found that it took the bank 18 months to “identify and assess the specific market abuse risks its business may have been exposed to and which it needed to detect.”
Citigroup agreed to resolve the case, which dates back to arrangements in place before 2018, reducing the fine payable by 30%.
“The framework for market integrity depends on the partnership between the FCA and market participants using data to detect suspicious trading. By not fully implementing the new provisions when required, Citigroup Global Markets did not carry its full weight in this partnership,” said Mark Steward, the FCA’s executive director of enforcement and market oversight.
Citi said it was “pleased to put the matter behind us” in a brief statement in response to the fine.
